Blog: Sugar, oil and cereals push up FAO commodity price index
Michelle Russell | 16 March 2012
Increases in sugar prices, coupled with higher prices of oils and cereals pushed the Food Price Index up for the month of February.
The Food and Agriculture Organisation (FAO)'s sugar price increase, along with higher prices of oils and cereals, pushed the Food Price Index up 1% in February, averaging 215 points.
Sugar prices rose by 2.4% last month as the market reacted to fears of a delayed harvest in Brazil.
The sugar index reached 342 points for the month, albeit 18% lower than in February last year, the FAO said last week. The price rise was driven by unfavourable weather conditions in Brazil, prompting the possibility of a delayed harvest that could lead to short-term tightness in the market, it said.
Large production harvests in India, the EU, Thailand and the Russian Federation managed to contain the increase, but failed to stop the Food Price Index edging up.
Dairy prices fell 2%, but oil and cereal prices both experienced 2% price increases due to poor monthly production growth in palm oil, and high international wheat prices, respectively.
The increases may come as little surprise to those in the industry, given that figures released by BRC-Nielsen in the UK last week showed the annual rate of food inflation in the country was 4.2% in February, compared to 3.7% a month earlier.
The ambient categories were the prime drivers of food price rises, the group said, where inflation is said to be 6.7% year-on-year to February versus 5.6% in the year to January.
Industry watchers had expected inflation to ease this year, and suppliers in particular will be keen to see prices fall back after a year in which commodity cost pressure has led to the need to increase prices. And in a climate of weak consumer confidence, any further price increases will inevitably hit food sales.
A new report by the Soil Association has highlighted a lack of healthy lunch options at the cafes of some of the UK's most prestigious visitor attractions....
The BBC turned to just-food today for insight on the price dispute between Tesco and Unilever....
Just weeks after buying UK turkey processor Bernard Matthews from administration, food tycoon Ranjit Boparan has struck a similar deal....
- Nestle India grows with global, digital innovation
- Analysis: Tyson's shrewd investment in Beyond Meat
- Thailand: convenience to continue to thrive
- Focus: Thai demographics drive health categories
- The promise of fledgling Czech gluten-free market
- Mars launches Maltesers in the US
- Bel takes majority stake in MOM Group
- Campbell backs US nutrition start-up Habit
- Nestle's Buitoni to remove GMOs
- Unilever in continuing price spat with Musgrave
- The Big 15: Strategies and Priorities of Top Packaged Food Players in Comparison
- Omega-3 in Food and Beverage:Time for a Reboot?
- Packaged Food: Quarterly Statement Q3 2016
- Global Food Packaging: Innovating for Greater Convenience and Quality Image
- Meat Processing in China - Industry Market Research Report